All Forum Posts by: Daniel Elbe

Hey gang, 

I'm looking for some feedback from investors who have gone the live-in flip route. I'm in the market to buy out in the Colorado Springs area, and figure if I'm going to buy, I'd rather buy something I can force appreciation through rehab rather than hope the market appreciates. I plan on living in the house for at least 2-3 years before I move, (most likely on military orders) so I don't think HML is a great option. Depending on the offer acceptance, I think I can walk in to the house about $110,000 under ARV. My wife and I plan on doing some of the work ourselves (flooring, tiling, painting) but larger items will definitely require contracted work, and more $$ invested. This will come in the form of moving walls, opening spaces up, and the sub tasks associated with it (demo, framing, rewiring electrical, dropping new lights, etc.) The smaller and more cosmetic things I can pay cash for, but the larger contracted items I would have to finance.

Does anyone have advice on the best ways to finance renovation for a live-in flip? Assuming my numbers for ARV are correct, I can most likely get about $25k in a HELOC (assuming they will loan on 75% of the ARV). I'm active duty military and assume that a VA loan will be my best option with low interest rates and 0% down, but I don't think there are any VA options for renovation. What kind of loan do you recommend I pursue? How do you recommend I finance the larger renovation projects?

Thanks!

Dan

Thanks Brad, will do 

Thanks for the feedback!  Travis, any recommendations on lenders to start with out here?

Hey all ,

I just listened to podcast 64, and heard about homepath mortgages for only 10% down. Can anyone with experience with these (particularly in Colorado) elaborate on how to apply for these? Can most mortgage brokers do these? Is there a major draw back, like high PMI? This could offer a great opportunity for a buy and hold in the Colorado Springs area, so I'm curious how to get started.

Thanks,

Dan

Going to agree with Brad there. Not sure what size home you are used to, but $100k won't get you very far in the springs. Most 3 bed, 2 bath homes will run you at least 220, depending on the neighborhood.  

I agree to explore leveraging a va loan on a multi family to help save money for your build home. Or rent for a couple years

the 1 or 2 % rules are just generic guidelines to do really quick beer math on whether a property will be profitable as a rental. You always want to look at the more detailed numbers,  and the overall demographics of the area. Those rules mean that after factored expenses they will most likely be profitable.  Again, depends on the area and demographics too.

Realistically I'd like someone to run the rehab.  I work full time in the military and likelihood of me being able to be there for every decision and keep a constant eye on progress is slim.

Greetings all,  I'm looking for recommendations on contractors in Colorado Springs.  Particulalry teams that have experience working in old homes (turn of the century type).  Does anyone have good experience with a good roofer, general contractor, carpenter, plumber?

Any recommendations would be greatly appreciated.

Agree with Kimberly, there are too many variables to simply look at $$/sq ft in a given location.  School District makes a huge difference in Colorado Springs.  As far as bedrooms go, a rental property I own in Richmond gets about $0.91 per sq. ft.  This is a 4 bedroom home a decent school district.  If the same size home only had 3 bedrooms, I would only expect about $0.75/sq ft. 

Having lived in Honolulu before moving back to mainland, I know that price/sq ft on rentals would really only be a decent metric when comparing very similar units (class A apartments in the Ala Moana area, for example). A 800 sq ft apartment off Ala Moana will potentially be $1500 more/ month than a same size apartment in Mililani or Aiea. 

What type of market are you looking to invest in?  Are you looking for something off-island?

Andrew, I traded emails with Adrian (listed above) a couple times, but I've been working on a couple out of state deals lately. Best of luck, let me know how it goes.